Xcel Energy aiming to move away from coal

Xcel Energy is now proposing to stop producing electricity with coal in its eight-state service area by 2030 as another plant – Tolk Station in Texas, nine miles east of Muleshoe – plans on retiring its coal-fueled units earlier than originally planned.

The plan will further accelerate Xcel’s efforts to reduce carbon emissions by 80 percent by 2030 according to Xcel senior media relations representative Wes Reeves.

The two coal-fueled units at Tolk Generating Station in Lamb County, Tx., had been scheduled for retirement in the 2032 to 2034 timeframe because of a growing shortage of underground water resources for their boilers and cooling towers, according to a news release from Reeves.

For the past two years Xcel reduced the operating hours of the Tolk units to extend those water resources into the next decade.

Xcel will soon propose to regulators in both Texas and New Mexico to retire Tolk’s coal-fueled generating units in 2028, which will give Xcel more flexibility to operate the plant to help offset the high cost of natural gas. Natural gas fuels about 30% of the region’s electricity generation.

Reeves reports the change is expected to save customers approximately $70 million in fuel costs.

Xcel has also updated Tolk with synchronous condensers, equipment that takes power from the grid to operate turbines for grid voltage support. That function will remain after 2028, and new generating resources could be located at Tolk down the road, according to Reeves.

Reeves said Tolk is a vital asset for the Xcel system and is not closing in 2028, but its function will change when the coal-fueled generating units are retired earlier than was previously announced.

What about job losses?

Reeves said, “We anticipate a reduction of about 30 positions once the plant transitions away from coal operations.”

Reeves said close to 40 employees will still be needed beyond 2028.

“Some of the affected employees would be eligible to retire in six years and we’ll work with affected employees to transfer into other positions at the time the plant operations change,” he said.

Reeves said when Xcel Energy retires the Comanche No. 3 coal unit in Pueblo, Co. in 2030, Xcel Energy will no longer have any plants that use coal as a fuel source.